San Francisco’s once-prominent San Francisco Centre mall, a sprawling 1.5-million-square-foot complex that was a key retail destination, remains shuttered amid ongoing challenges, underscoring a notable gap in the city’s broader economic rebound fueled by artificial intelligence and technology investments.
The property, located on Market Street, was a vibrant hub until the onset of the COVID-19 pandemic, featuring amenities such as a luxury spa, a nine-screen movie theater, and anchor department stores Nordstrom and Bloomingdale’s. However, the mall entered a steep decline marked by heightened crime, increased homelessness in the area, and a drop in shopper traffic, ultimately leading to its closure earlier this year.
San Francisco Centre’s difficulties sharply contrast with the overall citywide recovery, where sectors including retail, office space, and housing are experiencing renewed vigor, alongside surging job listings and venture capital activities. Rents in San Francisco have returned to some of the highest levels nationwide, reflecting this resurgence.
Prior to the pandemic, annual sales at the mall exceeded $1,000 per square foot, placing it among the top-performing retail centers in the Bay Area. Yet, intermittent closures throughout 2020, combined with persistent safety and social issues, deterred shoppers upon reopening. By 2022, sales had declined by 35% compared to pre-pandemic figures.
The exit of Nordstrom in 2023 served as a critical blow, triggering a cascade of tenant departures including Bloomingdale’s. The mall’s owner, Unibail-Rodamco-Westfield, subsequently ceased loan payments and surrendered the property to lenders. By 2025, vacancy rates had soared to 93%, with the center operating at a significant financial loss.
Efforts to sell and redevelop the mall have proven complicated. A deal reached in March with two local firms—Presidio Bay and Prado Group—valued at approximately $130 million, collapsed in July after the buyers concluded redevelopment would be hindered by the mall’s intricate ownership structure and the need for multiple approvals. For example, the Bloomingdale’s portion remains separately owned by Macy’s Inc., and parts of the underlying land are controlled by the San Francisco Unified School District, which leases the property to the mall’s operators.
Despite these complexities, there are signs of cautious optimism. The school district has agreed to extend the ground lease through 2082, providing potential buyers with greater lease stability. Additionally, retail rents in the city have risen 13% over the past year, with some investors reassessing the risks associated with mall properties.
Among prospective redevelopment plans, local developer Urban Land Development has expressed interest in transforming the former Nordstrom site into a multi-level sports facility, which could feature volleyball and soccer fields alongside “94 Feet of Game,” a basketball training program founded by Bay Area native and NBA assistant coach Phil Handy.
While many streets adjacent to the mall show signs of vitality—with retailers such as Ross and Uniqlo expanding or re-entering the market—San Francisco Centre remains a costly and complex project. Maintaining the vacant mall requires millions annually, and sources familiar with the situation indicate that funds could be depleted within months if a resolution is not reached. The future of this emblematic space will largely depend on overcoming ownership and regulatory hurdles to align the interests of multiple stakeholders.